2009

Business Plan
Yamta Engineers

Syed Muhammad Hassan

Muhammad Laraib
Shahbaz Nawaz
Syed Owais Ali

Presented to
SIR MUHAMMAD ALI SHEIKH
FALL 2009
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Acknowledgement

We are thankful to ALMIGHTY ALLAH who gives us

encouragement and determination to do this project without his
willingness we are unable to do this project.

We are grateful to our teacher Mr. Mohammad Ali Sheikh for

teaching us the Entrepreneurship. His versatile knowledge in the
field of Entrepreneurship and unique teaching style has developed
our knowledge and cleared many ambiguities.

We are all very grateful to him for assigning this challenging

project, which will further help us in evaluating many interrelated
dimensions in establishing a new business especially in Pakistani
Society.

Finally, we thank all our other professors and teachers who has
taught us in different fields as finance, marketing, management
and other areas of specialization and made us able to think
differently as an entrepreneur and specially to those who has
directly or indirectly supported us with their assistance and
guidance to compose this project report and accomplish broader
vision to visualize things.
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LETTER OF TRANSMITTAL

14th September, 2009

Mr. Mohammad Ali Sheikh

Instructor
Entrepreneurship
MAJU Karachi

Dear Sir,

Reference to our course final project, a formal Business Plan on “GAS BURNERs
Remote Control”

Besides giving the overview of the entire Business Plan, We will also include the
legal requirement that is required to start a new business.

We would like to have permission from your honor to begin the Business Plan in a
formal way.

Yours truly,

Syed Muhammad Hassan

Muhammad Laraib
Shahbaz Nawaz
Syed Owais Ali
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Table of Contents
Introductory Page……………………………………….01

Executive Summary……………………………………….03

Industry Analysis…………………………………………04

Description of Venture………………………………...05

Production Plan………………………………………......07

Marketing Plan…………………………………………….09

Organization Plan………………………………………..11

Assessment of Risk…………………………………………..13

Financial Plan……………………………………………….14

Appendix………………………………………………………….17

Introductory page
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NAME AND ADDRESS OF BUSINESS

The name of the business, under which we are going to start a new
project, is “Yamta Engineers” the manufacturing enterprise. The
project is to manufacture a GAS BURNERs Remote Control. As
kitchen appliances are the need of every house in present era and
burners are one of the essential needs of every kitchen. Therefore we
have chosen this project and are positive that it will have a great
potential and we will serve at our best.

Name and address of Principles:

1. Syed Muhammad Hassan

Will serve as a CEO of the project
2. Muhammad Laraib
Will serve as a supporting partner
3. Shahbaz Nawaz
Will serve as a supporting partner
4. Syed Owais Ali
Will serve as a supporting partner

Nature of a Business:

The nature of the business is sole proprietorship and the company

will provide Designing, Developing, Manufacturing of different
products related to plastic, sheet metal, machining parts, and
electronics.
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Statement of Financing Needed

Rs.
Molds 150,000
Assembly Tooling 70,000
Assembly Bay setup 150,000
Project Control Room 100,000
470,000

Promotion Cost 500,000

Raw Material 1,100,000
Distribution Cost 176,500
Conversion Cost 650,000
2,426,500

2,896,500

Statement of Confidentiality of Report

As the business is Sole Proprietorship, so there is no chance of any

leakage of details of the report. And it is only transmitted by the
owner to the people who are eligible to have an access to it.

EXECUTIVE SUMMARY
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We Syed Muhammad Hassan, Muhammad Laraib, Shahbaz Nawaz, and

Syed Owais Ali are going to start a business that is a manufacturing
base enterprise in which we are going to manufacture a “Remote
control Gas Burner”. We are initially starting with 3,000,000 Rs.
covering all the cost related to the project.
We will make our own product, for this we will buy raw material and
also built an electronic assembly. The production is done in assembly
line method so it will be easy to make the product quickly and easily.
Also there is a proper control room in which all the data will be
recorded and will be managed continuously.
The purpose of producing this product is based on the easiness for
house wives specially, and also in different restaurants and bakeries it
can be used. Additionally gas heaters control can also be the area of
use. As Gas Burners are used in each and every house so there is a
great potential in the market for this product because of the
uniqueness of the project. As there are companies working in Karachi
and allover Pakistan producing Gas Burners but we are the first who
will launch a Remote Control Gas Burners, as in house it is difficult for
the women to stand near the stoves and have to wait for controlling
the knobs. With the help of remote it will become so easy for them to
save their time and it also helps them to cook at there best.
In the market currently there is no competitor of this product but it
is a challenge for us to make this product familiar to the people and
make them to buy this, we will be done by promotion of the product
and best quality control.
Our product is basically for middle class people and according to our
analysis in Karachi approx. there are 5 million families living from
which at least three million use the gas burners in their homes. So we
have a huge market at present. They will be our potential customer.
In starting we will launch our product in Karachi and later on the
remaining market of Pakistan will be covered gradually.

INDUSTRY ANALYSIS
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Future outlook and trends

As we are going to introduce a Remote Control Gas Burner so there is a

bright future of this product as it will be more convenient for house
wives specially, as it make there working more easy.

Analysis of competitors

Currently there are only two companies that are the wholesalers and
manufacturer of Gas Burners; they are GAS AGE APPLIANCES (PVT)
LTD and SHAN CONTROLS (PVT) LTD. They both are the
manufacturers of Gas Burner, but we are not going to manufacture the
gas burners but a remote control only with unique feature. So at
present there are no competitors of this newly developing product.

Market Segmentation

We are targeting the Middle Class people specifically. The population

of Karachi is about 20 million if we consider in families there are 5
million families from which at least 3 million families are using Gas
Burners in there homes, moreover some may have two or three gas
burners at home as we have a joint system.
So in this case we have a huge target market and as of the unique
feature a great demand in the market is expected.

Industry Forecast

The gas burner industry in Pakistan is not a huge one but it is related
to the daily usage products and the gas burner has become a need of
each house in present era.
So by launching this product there can be a boom in this sector. This is
on the basis of some small surveys we conducted before the
finalization of this product launching.
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DESCRIPTION OF VENTURE

Product: GAS BURNERs Remote Control

Parts:
• Gas Burner
• Remote control
o Controller
o Gas flow control valve (GFCV)
Working:

GFCV will be installed on the in let line of the gas to the gas burner.
1. Possibilities of mounting the GFCV separately on each burner or
combination of burner in series will be provided as per
requirement.
2. GFCV will be exclusively separate kit and can be installed on any
size and type of gas burner.
3. Remote control will actuate the value moving in linear direction in
taper metal housing, from 0 to maximum opening.
4. The variation of gas pressure up to 50% will not disturb/ affect
the working of the GFCV.
5. Mounting on line is simple and quick by just inserting the GFCV
assembly on inlet line and connecting by 2 couplers.
6. The system is leakage/ seepage proof.
7. Control will be provided in water proof packing.

Size of Business:

The size of business according to the definition of “SMEDA” is

considered as the small business enterprise with 15 human resources
with total investment of Rs: 3,000,000 (three million) and with total
business assets Rs: 0000,000???
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Office Equipment:

1.3 Computers @40,000 Rs. 120,000

2.1 laptops @55,000 Rs. 55,000
3.1 Printer @15,000 Rs. 15,000
4.1 A.C 2ton @38,000 Rs. 38,000
5.1 Dispenser @ 9,000 Rs. 9,000
6.Fixtures/fittings Rs. 100,000
7.Computer trolley/tables
/chairs etc Rs. 100,000
8. Stationary/misc Rs. 38,000
Total Rs. 475,000

Background of Entrepreneurs

 The owner of YAMTA Engineers Mr. Syed Ehtesham Husain is a

mechanical engineer having 33 years of practical experience.
Visiting facility in NED University since last 7 years. His son Mr.
Hassan helping him in his business since long.
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PRODUCTIOIN PLAN

Manufacturing Plan

o Casting
o Molding
o Machining
o Assembly
o Testing
o Packing
o Electronic Circuit Manufacturing

Physical Plant

o Machining facility
o Molding facility
o Testing facility

Machinery and Equipment

The required manufacturing process and inspection facilities

CNC MACHINING CENTRE

24-AUTO TOOL CHANGER 01
650 X 550 X 550 mm

Milling machines
Bridge port 01

Tool Room Universal Milling M/C 01

CNC Wire cut EDM 01

NC EDM-50 A 01
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NC EDM-60 A 01

Drill EDM (0.3 to 3.0 mm) 01

Surface Grinder 600 mm 01

Shaping machine 600 mm 01

Turning machine 01

Drilling machines 01

Computers Facility, Auto cad / Pro E 01

Measuring / Inspection instruments (Complete range of

conventional/ Digital instruments)

Back up support *standby generator 37 KVA

* Fork lift

Names of Suppliers of raw material

o All importers of plastic grain

o Local casting facility
o Brass and copper local market
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MARKETING PLAN

The marketing strategy is based on the basis of personal interviews

with different people and brainstorming between the owners and some
business professionals. Initially our promotions would be three days a
weak and as soon the production increase.

MARKETING GOALS

• To make the people aware of a good and useful product for there
homes.

• To establish an effective and profitable marketing mix of service,

place, price and promotion.

MARKETING OBJECTIVES

• To increase enterprise revenue and profitability.

• To maintain and improve the services of the business.

• To introduce some new and better features for better production.

• To expand to at least two new locations by the end of the year 2.

Pricing
Manufacturing cost Rs. 333
Depreciation cost Rs. 3
336
Overhead cost Rs. 17
Rs. 353
Promotion
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Our promotion will heavily rely on on-air media advertising. However it
will be important to create an awareness of our product to the target
market. To attract attention and to create awareness signs will display
our product names and describe features of our product to the many
individuals pass by different markets. Pamphlets will also be
distributed to the people and will also be attached to the different
newspaper which we will be issuing.

Advertising Media

Three advertising media would be used:

• Pamphlets

• Bulletin Boards

• Newspapers and Magazines

Ads will be printed on the newspapers and different journals and also
on journals that are related to house, kitchen appliances and also food
recipes books, etc.

CONTROL

The marketing plan of the project will be implemented with a lot of

rules and regulation. The control factor would come into play as the
strategy would be kept in check. The plan would also be checked from
outside and surveys would be conducted and people suggestion would
also be taken to make the strategy more effective as well. However
the control of the marketing plan is also very important from the
awareness point of view as well. Strict implementation would be a key
to a successful marketing plan for the Project.
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ORGANISATION PLAN

Form of Ownership

The form of ownership of a business is “Sole Proprietorship”. Business

is owned by Muhammad Hassan as he is serving as a CEO of the
project. He has three supporters who will work with him namely Mr.
Shahbaz, Laraib and Owais. They will serve the enterprise and use
there skills in promoting the business and help Mr. Hassan to run the
enterprise smoothly.
All three members are hiring on a fixed salary so there is no chance of
having any conflict among them.

Identification of Partners or Principal Shareholders:

There is no partnership in the enterprise.

Authority of Principals:

The authority of principles of the business would be as follows,

It would be based on the following key points,
1. Power
2. Distribution
3. Marketing
4. Human Resource

Power:
The authority of power for all the issues related to the enterprise
is in hand of Mr. Hassan. Although he will take care of to run the
business with mutual concern of the employees as supporting partners.

Distribution:
The distribution power would be given on merit and there would be
no one man show on any part.

Marketing:
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The power to market a product is giving to a person who is active
with mind and is best in creativity.

Human resource:

The human resource will be hired on merit basis and mutual concern.

Management team background:

The management team of project would comprise of the following

people,
1. Syed Muhammad Hassan
2. Muhammad Laraib
3. Shahbaz Nawaz
4. Syed Owais Ali

Roles and responsibilities of members of organization:

Mr. Hassan will serve as a CEO of the project, every decision must be
take by him and all the dealings must be done after concerning him.

Mr. Laraib will support the enterprise in Distribution prospective. He

will be responsible for dealing with the distributors and is responsible
for proper distribution of the product.

Mr. Shahbaz will be responsible for the marketing and promotions and
has to concern with Mr. Hassan for any necessary promotion need.

Mr. Owais will serve as HRM advisor and will look upon all the matters
related to HR in the enterprise with concern of CEO.

ASSESMENT OF RISK
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Evaluation of the weakness of the business

Like all other businesses, this project may also face some stresses due
to slow growth of the sale or acceptability of the product or in case of
extra ordinary demand a short fall of finances etc. To overcome all the
3, the promotion of the product in time supplies to the market is
important, which already has been planned. Financial short falls can be
makeup from the banks or investing companies.

FINANCIAL PLAN
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Pro forma Income Statement

INCOME STATEMENT
YEAR 1st year 2nd year 3 year

SALE 24,180,00 25,872,60 27,888,00

0 0 0
COGS 19,620,00 21,635,4 22,848,0
0 00 00
GROSS PROFIT 4,560,00 4,237,20 5,040,00
0 0 0
LESS: EXPENSES

STAFF SALARIES EXPENSE 240,000 240,000 288,000

TELEPHONE BILL EXPENSE 38,400 36,000 39,600

ELECTRIC EXPENSE 57,600 58,200 58,800

MISCELLANEOUS EXPENSE 56,400 51,600 42,000

TOTAL EXPENSES 392,400 385,800 428,400

INCOME BEFORE TAX 4,167,60 3,,851,40 4,611,60

0 0 0
LESS: TAX 16 % 3,139,200 3,595,200 3.884.160

PROFIT AFTER TAX 1,028,40 256,200 727,440

0
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Pro forma Balance Sheet

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BALANCE SHEET
ASSETS 1 Year
CURRENT ASSETS
Cash 2,834,800

TOTAL CURRENT ASSETS 2,834,800

NON CURRENT ASSETS
Office Furniture and Equipment 475000
Depreciation Office Furniture and (20,000)
Equipment
Machinery and Equipment 775,000
Depreciation Machinery and Equipment (36,400)

TOTAL NON CURRENT ASSETS 1,193,600

TOTAL ASSETS 4,028,400

LIABILITIES
Equity/capital
Muhammad Hassan 3,000,000

Total capital 3,000,000

Net income 1,028,400

TOTAL LIABILITIES & OWNER EQUITY 4,028,40

0
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Projected Cash Flows

CASH FLOWS
Cash flows from operating 1st year 2nd year 3rd year
activities:
Cash received from customers 1,028,400 256,200 727,440
Interest received - - -
Payments to employees (240,000) (240,000) (288,000)
Payments to suppliers (140,300) (151,250) (158,200)
Interest paid - - -
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Taxes paid (3,139,200 (3,595,200) (3,884,160)
)
Net cash provided from operating (2,491,100 (3,730,450) (3,602,920)
activities )

Cash flows from investing

activities:
Purchase of Furniture (475,000) (50,000) (65,000)
Purchase of Machinery (775,000) (39,000) (40,000)
Net cash used in investing (3,741,100 (3,819,450) (3,707,920)
activities )

Cash flows from financing

activities:
Proceeds from issuing long-term debt - - -
Proceeds from issuing common stock - - -
Payment of short-term debt - - -
Net cash provided by financing - - -
activities

Net increase in cash (1,250,000 (89,000) (105,000)

)
Cash at beginning of year 3,000,000 1,750,000 1,661,000
Cash at end of year 1,750,00 1,661,000 1,556,000
0

APPENDIX

• Certificate of Registration
• National Tax Number Certificate
• Special Power of Attorney
*All copies are enclosed with
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